Nevertheless, this is only true for businesses where competition occurs in a global range, such as perfumes, luxury goods, fashion, electronics, consumer durables, among others. I am a firm believer that adaptation strategy offers advantages of meeting differences of local markets at various levels, the same cannot be said of standardization marketing as it is a much bigger playing field. Integrating Standardization versus Adaptation in International Marketing Strategies: Companies in Latvia. In a practical training period in BQTV in autumn 2010, the author recognized that a strategic marketing plan for a Vietnamese organization to attract overseas cus-tomers is enormously necessary. This makes it less meaningful to talk of the entire marketing mix as either standardized or adapted (Vrontis 2003). Awesome dissertation blog, thanks for the useful information. It is also very vital to adjust the marketing strategy and mix to fit local preferences and tastes, customer non-equivalent requirements, and special market needs. Another disadvantage is that it relies mainly on economies of scale. Yeu, C., Leong, K., & Tong, L. 2012. I’m a senior writer at study-aids.co.uk and hold a BA (hons) Business degree and MBA, I live in Birmingham (just moved here from London), I’m a keen writer, always glued to a book and have an interest in economics theory. One of the key focus areas has been the interest in the degree of standardization versus adaptation of various international marketing mix elements. Any chance you'd include our actionable guide on “Marketing Mix” (https://www.cleverism.com/understanding-marketing-mix-concept-4ps/) in your … Any indication when this will be sent? (1996) ‘Product standardization or adaptation: the Japanese approach’. Journal of International Business and Cultural Studies, 1-29. This enables competition to acquire bigger market share through adjusting their products to fit the need of a certain segment or market. 1.2. Thus, earlier literature has not contributed a clear theoretical approach explaining the basis on which the various antecedents for the degree of standardization or adaptation are developed. The key problem for the retail giant was that the company tried to inflict its values globally. In the international business market field, standardization versus adaptation debate is not new, where thus far researchers have not agreed on which strategy is effective to be adopted in international market. The role of foreign sales in the operations of companies has long attracted interest, and there is an increasing interest in the strategies used by companies in their foreign marketing. The debate is about Standardisation Vs Adaptation and this … With around 35,000 restaurants in around 120 countries globally, McDonald’s competently manages its franchise system, providing an outstandingly reliable branding and customer experience, while also enabling for locally appropriate service and menu differentiations in segments or markets globally. adaptation strategy for each element of the marketing mix to achieve the best per-formance and effectiveness. The purpose of this study is to examine the choice of standardization and adaptation strategies in the marketing mix implemented by KFC fast food in Vietnamese market, it also integrates consumers’ perception towards the case company’s marketing mix implementation. Moreover, product modification or adaptation approach will results in a boost in sales volume of the company in international market; by highly meeting the wants and needs of the consumers, but reflecting on the competing companies; and by also retention of the current customers through frequently updating the product. Globalizing your company and selling goods and services abroad can present a lot of challenges. 28 FIGURE 7. (1998) ‘New perspective on marketing mix pro-gram standardization’. Dimitrova, B., & Rosenbloom, B. Acquiring the benefits of both strategies needs various firms to not only standardize different components of marketing strategies and marketing mix, but to implement also adaptation when needed with the aim of meeting the evident market needs (Batraga & Pūķe, 2015). Producers should strive to create an ideal balance between both standardisation and adaptation strategies as standardisation will keep production costs low, but adaption will ensure that consumers are being satisfied in each country they trade in. The current section analyses the marketing mix of two multinational companies, namely Google and McDonalds. This service is more advanced with JavaScript available, Resources, Efficiency and Globalization For instance, diversity across various countries and markets does not enable whole standardization. Adopting a standardized approach assists multinational businesses to direct their emphasis on a uniformed marketing mix particularly concentrating on one single product or service, enabling adequate space for quality improvement. Both international of businesses and an increasing level of globalization have had a significant impact on how businesses plan and view their global marketing strategy (Wang & Yang, 2011). We have more marketing dissertations available for you to look through. An example of a major corporation that has been able to demonstrate the benefits of both adaptation and standardization strategy is McDonald’s. 34 FIGURE 9. A core element of any international marketing strategy is to decide which marketing mix elements or sub‐elements to standardize and to what degree. Standardisation and/or adaptation of the export marketing strategy (with respect to product, price, promotion and distribution) signifies a vital criterion for success in export activities. And do we standardize distribution channels, pricing, marketing communications, product support and customer service? First, customers can anticipate similar quality level of any particular brand in all outlets across the globe. Standardization and adaptation of the international marketing mix. One company example is Walmart’s failure when it entered international markets (Kim, 2008). This may also pose a great problem because some countries adopt trade barriers such as the EU and the US (Dimitrova & Rosenbloom, 2010). However, even though the standardization strategy is more used, its adoption is not absolute. (2007) ‘The fundamentals of standardizing global marketing strategy’. Not logged in Thanks for the positive comments. 31 FIGURE 8. The preferable option for firms is to take such a strategy which is a mixture of standardisation as well as adaptation of the different elements of marketing management programmes. 250-259. Check all inboxes, any problems please let me know. Adaptation ou standardisation des produits. (2003) ‘Standardization/adaptation of inter-national marketing strategy. Aussi, l’entreprise doit-elle adapter son retailing mix? Hi. The results support the existence of a positive impact of both marketing mix adaptation and standardization on performance. Standardization and adaptation is one reason of concern for the organization to choose. and Merrilees, B. (Roger, 1995). Moreover, Hise and Choi (2013) posit that standardization facilitates positive consumer perceptions towards certain product. A Comparative Study on International Marketing Mix in China and India: The Case of McDonald’s. Ruigrok and van Tulder (1995) argue that there is no single marketing mix suitable for different market environments. Brei, et al (2011) state that businesses managed effectively have shifted away from customizing their products to serving internationally standardized items that are low priced, reliable, functional, and advanced. Vrontis, D., & Thrassou, A. Thanks for the input, I found it useful and debatable. Wang, X., & Yang, Z. FIGURE 5. Dissertation emailed to the dissertation you submitted in the PayPal invoice. Management and Administrative Sciences Review, 2(4), pp.353-359. During the past 40 years, there have been numerous studies focussing on the general question of whether to standardize or adapt in international marketing strategy (Ryans, Griffith, and White 2003). This is a preview of subscription content. Particularly, Walmart’s incident is Germany, where the company lost large sum of dollar as of 1998, has become an example or reference point for how not to expand internationally. Wal-Mart Korea: Challenges of Entering a Foreign Market. Standardization versus adaptation of international marketing strategy: an integrative assessment of the empirical research. Selling huge amounts of non-adapted, same product and purchasing certain constituents in bulk may help in reducing the cost-per-unit. Globalization has helped in reducing the differences between countries. As pointed out, adaptation involves modifying a product so as to meet the local requirements and customs. I totally agree Wilber. The increased costs are attributable to defender fights and developments, which are also more risky. During the past 40 years, there have been numerous studies focussing on the general question of whether to standardize or adapt in international marketing strategy (Ryans, Griffith, and White 2003). Rialp, A., Rialp, J. and Knight, G.A. Innovative Marketing, Volume 3, Issue 4, 2007 Demetris Vrontis (Cyprus), Alkis Thrassou (Cyprus) Adaptation vs. standardisation in international marketing – the country-of-origin effect Abstract The literature on international marketing presents a confrontation between two mainstream schools of thought regard- ing international marketing. Il prend en compte les différences culturelles lors de la planification des McDonald’s has also chosen to “re-image” its business operations in their advertisements through integrating a hip-hop theme with young generation icons such as Lee Hom and Justin Timberlake in China as a way of attracting young people. It may be worth mentioning advertising is directed to a large number of people and not to one individual and this forms standardization in marketing. Rocha, T. V., & Silva, S. C. 2011. Ce document a été mis à jour le 17/03/2011 Additionally, standardization is a rational strategy in an era in which trade barriers are diminishing. British Food Journal, 103(2), pp.97 -111. These errors can be partly attributable to the insufficient awareness of how Standardization and Adaptation work in international markets. This research consists ofa questionnaire survey to the largest UK multinational companies and investigates companies′ level of adaptation and standardisation across international marketing tactics. 2003). On peut adapter un La Standardisation Et L Adaptation . These keywords were added by machine and not by the authors. Poturak, M., & Duman, T. 2014. Brei, V., D’Avila, L., Camargo, L., & Engels, J. Strategic adaptation to foreign markets. View all posts by Steve Jones. Product standardization refers to the process of maintaining uniformity of products and services sold in different markets or in other words setting identical characteristics for a particular good or a service. (Vrontis & Kitchen 2005, 87-88.) Other benefits linked to economies of scale consist of reduced investment costs, marketing operational costs, and enhanced research and development. During the past 40 years, there have been numerous studies focussing on the general question of whether to standardize or adapt in international marketing strategy (Ryans, Griffith, and White 2003). Cavusgil, T.S. Followers of standardized strategy state that the international market has become homogenized and thus, these firms can market their commodities similarly across the globe. Over 10 million scientific documents at your fingertips. It examines whether multinational companies are adapting or standardising their marketing mix elements when they cross geographical borders and expand their operations to foreign markets. N the international marketing literature, the desirability of pur-suing a strategy of standardization of marketing mix and other competitive strategy variables across national markets versus adaptation to individual national markets has been de-bated extensively (e.g., Ghoshal 1987; Levitt 1983; Walters The preferable option for firms is to take such a strategy which is a mixture of standardisation as well as adaptation of the different elements of marketing management programmes. Under standardization, providing a single strategy for the international market, along with standardizing the marketing mix components, can enable constancy wit… Wong, H.Y. Peng, M.W. Standardization may also vary by element or sub‐element of the marketing mix. However, our results suggest that companies should slightly emphasize the marketing mix adaptation (ES mean = .168) instead of standardizing it (ES mean = .134) when entering in a new international market. Part of Springer Nature. In a global setting, positive word-of-mouth can imply an improvement in sales. Srivastava, R., Fahey, L. and Christensen, K.(2001) ‘The resource-based view and mar-keting: The role of market-based assets in gaining competitive advantage’. standardisation and adaptation. They both represent a way of selling products overseas. There are some questions which most businesses in the international market expansion need to answer: what products do we aim to standardize? Thank you. The point is that marketing for international companies is not based on either of the two opposite strategies, since both strategies are probably to coexist, even in similar multinational company, brand, and product line (Rocha & Silva, 2011). One consideration shows that markets are becoming more integrated, increasingly more global and similar and consider that the main element to business survival is its capability to standardize. Implementation of international market expansion strategy involves strategic-level decision making in relation to global branding strategies, the choice of market entry strategies such as wholly-owned subsidiaries, exporting, licensing, or forming joint-ventures, as well as, deciding on the level of standardisation or adaptati… Such mistakes are mainly described by a lack of awareness of the role and contributions of adaptation and standardization in international markets. Based on some studies, followers of standardization consider that there is an integration of cultures with the same customer demand and environmental demands across the world. I hope readers of this discussion can make their own minds up to the standardization versus adaptation in international marketing arguments. In contrast, the other consideration identifies the challenges in adopting a standardized strategy, and thus, supports market adaptation or customization. Menon, A., Bharadwaj, S.G. and Howell, R. (1996) ‘The quality and effectiveness of marketing strategy: Effects of functional and dysfunctional conflict in intraorganizational relationships’. 2011. Seifert, B. and Ford, J. In contrast, there are other sectors where this same action does not apply and thus, this needs to be considered. Let us know in the comments. Barney, J., Wright, M. and Ketchen, D. (2001) ‘The resource-based view of the firm: Then years after 1991’. The answer to such questions need to either all adapted or all standardized. Hi Carolyn. Adapting the marketing mix for International markets is an important International marketing strategy. Standardizing many parts of a marketing mix is beneficial, but there are certain areas where modification will yield the best results. This research identified that both adaptation and standardisation are used at the same time. Nevertheless, standardization poses a range of shortcomings. It has been one of the most popular research topics since 1960s to understand whether standardization is better or adaptation for marketing mix in international business. First, price and place elements of marketing mix are the most adapted elements. They also state that trade barriers are being reduced and advancements in technology, where multinational companies reveal global integration in their strategies. Rather, they should initiate market research and establish their customers, and their wants and needs. Vrontis and Thrassou (2007) stated that multinational corporations need to realize how they should alter their whole marketing strategy and include how they order, distribute, and sell to match the new international or local market demands. Required fields are marked *, Sharing Is Caring - Please Share This Post. Vrontis and Thrassou (2007) stated that standardizing some components of the marketing mix, while adapting other components to differing market conditions is required. Third, promotion element of marketing mix is the most standardized element. Sousa, C. and Bradley, F. (2008) ‘Antecedents of international pricing adaptation and export performance’. Hise, R., & Choi, Y.-T. 2013. Standardization or Adaptation in International Advertising Strategies: The Roles of Brand Personality and Country-Of-Origin Image. Portuguese wine producers about the degree of adaptation of the marketing mix elements to international markets. and Arunthanes, W. (1995) ‘Ideal and actual product adaptation in US exporting firms: market related determinants and impact on performance’. Ryans, J.K., Griffith, D.A. This paper aims to identify the archetypes of marketing mix standardization-adaptation in MNC subsidiaries and to examine the relationships between MNC subsidiary strategy, environment and performance through the theoretical lenses of fit and equifinality.,The authors use a mail survey to collect data from MNC subsidiary business units located in multiple countries. In addition, the ultimate aim of a business needs not to be the cost reduction using standardization, but the actual long-term corporate profitability through improved sales attributable to the enhanced use of the differing consumer needs globally. If companies that have a strong reputation and brand identity decide to follow the standardized approach, they will certainly gain success. Moreover, this company has started to serve healthier foods (e.g. Components of both strategies need to be integrated so that it can enable international companies to achieve desirable success. Standardization marketing strategy is typically applied to discussion of global businesses and means to market a solution with uniform consistency throughout the marketing mix. Le Marketing interculturel est l’adaptation du Marketing international à l’échelle locale. As a result, selling or offering one unified item poses lack of uniqueness. Adaptation ou standardisation des produits; Arguments pour l'adaptation de la politique de produit; Furthermore, the study shows the importance of adapted the marketing mix to the local situation since it is the key to manage to design offers that will lead to success and increased market shares. One of the key focus areas has been the interest in the degree of standardization versus adaptation of various international marketing mix elements. Le modèle de Marketing Mix (également connu comme Les 4-P) peut être utilisé comme outil pour aider à définir la stratégie marketing. Michell, P., Lynch, J. and Alabdali, O. The company also selects convenient locations for its franchises, which include local neighbourhoods, airports, and malls. Continuum of standardization and adaptation. Adaptions also demand the use of different marketing and selling strategies in the foreign market. The Standardization versus Adaptation Dilemma: The Case of an American Company in Brazil. Within the field of international marketing, the debate over the amount or extent of standardization or adaptation is one of the longest. Nevertheless, Schilke, et al. One of the key focus areas has been the interest in the degree of standardization versus adaptation of various international marketing mix elements. These are also essential reasons for product adaptation and modification; literacy, customer lifestyle, and consumer’s income level. Second, while the product concept, colour and packet in product mix are adapted, the label and brand name are standardized. However, our results suggest that companies should slightly emphasize the marketing mix adaptation (ES mean = .168) instead of standardizing it (ES mean = .134) when entering in a new international market. tion vs. adaptation), (2) desired degree of standardization of the strategic resource mix (i.e., pattern of resource alloca-tion among advertising, promotion, personal selling, and other marketing mix variables), and (3) the desired degree of standardization of the strategy content (i.e., decisions on The standardisation of a marketing strategy means that companies offer a common marketing strategy and marketing mix on a regional, national and global level (Sorenson Theodosiou, M., & Leonidou, L. 2003. By focusing on one single uniformed product, employees will be trained to improve the product quality, which enables manufacturers to make equipment and technological investment that can protect the quality of the standardized product being served. Wei and Yazdanifard (2014) focus on three factors to analyse adaptation and standardization practices: transferability of competitive advantage; homogeneity of various consumers’ reponse towards the marketing mix; and similarities in the level of economic freedom. International Business Review, 12, pp.141–171. (1991) ‘Firm resources and sustained competitive advantage’. McDonald’s launched the McArabia (a flatbread sandwich product) in 2003, to its outlets in the Middle East. Aforementioned, different international markets mean different consumer’s preferences. Are US companies employing standardization versus adaptation strategies in their international markets? Journal of Asia-Pacific Business, 9(4), pp.344-357. 3- Un choix stratégique mix (adaptation/ standardisation).-----CONCLUS 2 2009/2010. However, this research is still criticized for lacking a strong underlying theoretical framework (Ryans et al. Standardization of marketing promotes communication about products or ideas. Koh, A.C. (1990) ‘Relationship among organizational characteristics, marketing strategy and export performance’. Necessary conditions for the advancement of knowledge’. Irrespective of various arguments of improved consumer homogeneity, various studies have reported that consumers are becoming progressively more complex or diverse and do not essentially intend to substitute quality over price. Vignali, C. 2001. Stratégie d ‘ adaptation ou marketing local normes techniques par exemple, ou alors l’ adaptation peut constituer un Les entreprises japonaises, par exemple, préfèrent lancer leurs de la stratégie extrême d ‘ adaptation de tous les éléments du marketing mix. This paper seeks to analyse the issues of adaptation (customization) and standardization (global strategy) within international marketing strategies and proposes specific approaches that can help companies compete efficiently and effectively within these global setting. Did you find any useful knowledge relating to the impact of standardization and adaptation on International Marketing in this post? Modern businesses are granted with vast opportunities in terms of revenue maximisation through entering new markets. In addition, in India, it launched the McVeggie, while introducing EBI-Fillet-O shrimp in Japanese markets. Calantone, R.J., Kim, D., Schmidt, J.B. and Cavusgil, T.S. Innovative Marketing, 2(3), pp.7-20. Moreover, companies may lack knowledge and experience regarding the technical elements of the different products and understanding on how to market a product (Hossain & Yazdanifard, 2015). Wei, S., & Yazdanifard, R. 2014. Les directeurs Marketing emploient cette méthode pour essayer de générer la réponse optimale sur le marché ciblé en "mélangeant" 4 (ou 5, … Most companies around the world globalise some elements of the marketing mix while localising others and they use a combination of multi-domestic, global or regional, and transitional … Le problème auquel sont confrontés les managers aujourd'hui se rapporte davantage à la gestion du marketing mix international qu'à la pénétration du marché. Akgün, A. E., Keskin, H., & Ayar, H. 2014. Firms can promote a strong international marketing strategy with the relevant structure, attitude, and operating behaviours that attain an effective and efficient balance between standardization versus adaptation approaches. (2009) point out that even in markets or countries with the same cultures, such as across the EU, there are variations in customer wants and needs. American Journal of Industrial and Business Management, 5, pp.45-52. Problem Solving Decision Making Supply Demand. Comparison on the Impact of Standardization and Adaptation on International Marketing. Proceedings of the 2015 International Conference, pp.27-36. 2009. Cavusgil, T.S., Zou, S. and Naidu, G.M. Hello, great write up. and Zou, S. (1994) ‘Marketing strategy-performance relationship: an investigation of the empirical link in export market ventures’. Schilke, et al. 252-262. Your email address will not be published. Journal of Research in Marketing, 3(1), pp. The old and ongoing debate about the adaptation/standardization of marketing strategy and the contingency approach that followed is the context for this research that has two main goals. The results support the existence of a positive impact of both marketing mix adaptation and standardization on performance. In addition, they state that standardization will be effective when the customer response homogeneity and the level of sameness in economic freedom are higher, with easily transferable competitive advantages. This paper listed some advantages and disadvantages of every strategy, suggesting that the solution to an effective market strategy lies between these two extreme strategies. Under standardization, providing a single strategy for the international market, along with standardizing the marketing mix components, can enable constancy with customers and also reduce costs. You can’t mention adaptation without mentioning standardization; they are two sides of the same coin. In 21st century most of the organization is going global. Adaptation ou standardisation des produits. In contrast, followers of international adaptation strategy focus on the significance of customization. With standardization, however, the products are neither modified nor are the marketing approa… and White, D.S. The Role of Marketing Standardization versus Adaptation Strategies on Managers’ Satisfaction with Export Performance: Proposal of a Conceptual Framework. 2011. Barney, J. Another benefit embraces cost reduction that provides the economies of scale (Hise & Choi, 2013). Viswanathan, N.K. Mengüc, B. For such a case, adaptation is predetermined. However low a cost a marketing mix may incur, it has no value if it is not accepted in the foreign market. Adaptation and standardisation are seen as two extremes upon the same continuum, meaning that if standardisation increases, adaptation has to decrease and vice versa (Jain, 1989). Hello Bobby. (1993) ‘Product and promotion adaptation in export ventures: an empirical investigation’. Such elements need to be reflected on for the success of the company (Hussain & Khan, 2013). Standardization Versus Adaptation in Global Markets: Is Channel Strategy Different?

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